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Thursday, 29 September 2016

Nissan delays Sunderland investment plans — FT.com

Nissan delays Sunderland investment plans — FT.com:

"Nissan is delaying new investments in its Sunderland plant until the UK has concluded Brexit negotiations with the EU, its chief executive said on Thursday in the first public admission by a carmaker that concerns over future tariffs are hurting business decisions.

Carlos Ghosn, who also runs France’s Renault, said the Japanese carmaker would defer decisions on where to build new generations of models currently assembled in Britain’s largest car factory until it knows whether it will face tariffs when exporting to the EU. The UK plant, which makes more than half a million cars a year, is heavily dependent on exports to the single market.

“Important investment decisions will not be made in the dark,” Mr Ghosn said at the Paris Motor Show."



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Right to sue over 9/11 risks Saudi pullout from US, say bankers — FT.com

Right to sue over 9/11 risks Saudi pullout from US, say bankers — FT.com:

"US legislation that allows families of victims of the 9/11 attacks to sue Saudi Arabia threatens to deter investment in the US and risks triggering the sale of billions of dollars of assets, Gulf bankers warn.

The US Congress voted overwhelmingly on Wednesday to override a presidential veto of legislation that waives claims of foreign immunity for terrorist attacks in the US.

Riyadh has not responded officially to the congressional vote. But Saudis have privately expressed concern to bankers that their assets could eventually become the target of legal action."



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U.S. 9/11 law exasperates Saudis, government silent | Reuters

U.S. 9/11 law exasperates Saudis, government silent | Reuters:

"A U.S. law allowing lawsuits against Saudi Arabia over the Sept. 11 attacks met a stony silence from Riyadh on Thursday but some Saudis bristled, saying the kingdom should curb business and security ties in response.

The Senate and House of Representatives voted overwhelmingly on Wednesday to approve legislation that will allow the families of those killed in the 2001 attacks on the United States to seek damages from the Saudi government.

Riyadh has always dismissed suspicions that it backed the attackers, who killed nearly 3,000 people under the banner of Islamist militant group al Qaeda. Fifteen out of the 19 hijackers were Saudi nationals."



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MIDEAST STOCKS-Saudi rebounds on OPEC deal but ends week with big loss | Reuters

MIDEAST STOCKS-Saudi rebounds on OPEC deal but ends week with big loss | Reuters:

"Saudi Arabia's stock market rebounded on Thursday on the back of petrochemical shares, which rallied in response to OPEC's deal to restrain oil output, but the bourse posted a big weekly loss because of government austerity measures.

Petrochemical firms, their profit margins closely tied to oil prices, recovered after Brent oil surged above $48 a barrel overnight on the OPEC deal in Algeria. The largest petrochemical producer, Saudi Basic Industries, gained 3.5 percent.

This encouraged buying back of a range of stocks and the insurance sub-index, which had seen many of its constituents drop their 10 percent daily limits in recent days, rebounded 2.4 percent. BUPA Arabia, the largest medical insurance provider, jumped 4.1 percent."



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Saudi riyal falls, bond may be delayed after U.S. Congress vote | Reuters

Saudi riyal falls, bond may be delayed after U.S. Congress vote | Reuters:

"The Saudi riyal fell against the U.S. dollar in the forward foreign exchange market on Thursday after the U.S. Congress voted to allow relatives of victims of the Sept. 11 attacks to sue Saudi Arabia.

Any legal action could take years to wind through the U.S. court system, and analysts said there might be little if any impact on the Saudi economy or state finances. But the decision by Congress was an unwelcome reminder of political and financial pressures on Riyadh as low oil prices strain its budget.

Saudi Arabia has been preparing to make its first international issue of sovereign bonds next month to raise $10 billion or more, but some Gulf bankers said the issue might now be delayed to give investors time to digest the news."



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Fitch: Low Oil Prices Weakens State Support and Operating Environment for GCC Banks | Reuters

Fitch: Low Oil Prices Weakens State Support and Operating Environment for GCC Banks | Reuters:

"Fitch Ratings says the sovereign willingness to provide support for Gulf Cooperation Council (GCC) banks has remained extremely strong and virtually no progress towards resolution has been made. Nevertheless, the sovereign ability to provide support has diminished in Saudi Arabia, Oman and Bahrain with the fall in oil prices since mid-2014 and this has reduced the average Issuer Default Rating (IDR) by one notch in these three countries in the past 12 months. In its 2016 compendium on GCC banks, Fitch says of the IDRs assigned by the agency to banks in the GCC region, 96% are investment-grade and 82% are driven by potential sovereign support. Just over half of Viability Ratings (VRs), which measure banks' individual credit profiles, are investment-grade and risk appetite/asset quality the main shortfalls. The operating environment has become a constraint on VRs in Saudi Arabia, Oman and Bahrain following the fall in oil prices. The average VRs in Saudi Arabia and Oman have been downgraded by one notch in the past 12 months."



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MIDEAST STOCKS-Saudi remains weak despite oil rally, rest of Gulf firm | Reuters

MIDEAST STOCKS-Saudi remains weak despite oil rally, rest of Gulf firm | Reuters:

"An overnight rally in oil prices after an OPEC production deal helped lift most Gulf stock markets in early trade on Thursday but Saudi Arabia's bourse contined to drop.

Saudi petrochemical shares, which make up roughly one-quarter of the market's capitalisation, jumped after Brent oil surged over $48 a barrel. The largest producer, Saudi Basic Industries, gained 1.9 percent.

But the main Saudi market index resumed its descent and fell 0.5 percent after 40 minutes of trade, heading for a third day of declines. In the previous two days, it slid 7.1 percent."



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Opec agrees on oil output cut at Algiers meeting — FT.com

Opec agrees on oil output cut at Algiers meeting — FT.com:

"Some of the world’s biggest oil producers have agreed to cut production for the first time in eight years, sending crude prices higher by more than 6 per cent and sparking big gains for energy stocks.

After more than four hours of talks in Algeria on Wednesday Opec committed itself to reducing output to between 32.5m barrels a day and 33m b/d, according to ministers.

The agreement surprised oil traders who thought a consensus would be difficult to reach because of divisions between Saudi Arabia and Iran, two of Opec’s largest and most influential members. Brent crude jumped $2.84 a barrel to $48.85."



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